The man was swimming at the unpatrolled beach about 7pm when he was seen floating in the water by a beachgoer who dragged him from the surf.

Attempts to resuscitate the man failed.

It was the second drowning death in the Hunter yesterday, with police investigating the mysterious drowning of a man near Wollombi, where he had been living on a remote property with a reclusive Buddhist monk.

The dead man, who has not been identified but was known to locals as Darrell, was found face down in a communal swimming pool at Burralong Valley, about 25 kilometres south of Wollombi, early yesterday morning.

He was last seen about 6.30pm the previous night. Police said yesterday they were unable to say how Darrell drowned.

He was found with his palms together, as if he had been meditating.

Darrell had been staying with a reclusive monk on a hilltop property on Murrays Run Road, where he meditated and helped the monk with daily tasks.

Under Buddhist tradition, Bhikkhu monks must have all food and drink placed into their hands by a layperson.

Local resident Graham Williams said he met Darrell last Thursday, when he first came to the communal swimming pool.

Mr Williams said Darrell meditated in the pool for about 15 minutes before swimming.

"He was one of the fittest people I've seen," Mr Williams said.

Mr Williams said he knew "very little" about the monk's residence, but knew Darrell had been living there.

A couple who arrived at the house yesterday to bring food to the monk said Darrell had been staying there for "less than a month".

The small community of Burralong Valley is made up of about 30 properties along an isolated rural road near Laguna. The residents share the pool and other amenities.

Forensic specialists examined the scene yesterday after Darrell's body was discovered about 9am. The driveway to the monk's house was also blocked off by police tape.

Police said yesterday they were not ruling out suspicious circumstances, but said foul play appeared unlikely.